Urban Renewal
City of Newport
Community Development Department
Memorandum To:
Planning Commission/Commission Advisory Committee
From:
Derrick I. Tokos, AICP, Community Development DirectorV’
Date:
March 7, 2018
Re:
Discussion about Major Amendment 13 to the South Beach Urban Renewal Plan
In March of 2017, staff updated the Newport Urban Renewal Agency on the status of the South Beach Urban Renewal Plan projects (see attached). The Agency is moving into Phase Ill of the plan, which is the final round of construction projects. This phase of construction will be funded with a $7,360,000 revenue bond to be issued in calendar year 2019. The South Beach Urban Renewal Plan contains an FYE 2020 deadline for initiating new projects. Agency members discussed the need to extend that deadline to FYE 2025 to provide a realistic amount of time to complete the work. This will also allow the City to fully leverage its tax increment resources. The District is scheduled to close in 2027 and this amendment will not change the closure date. The South Beach Urban Renewal Plan stipulates that a change to the 2020 deadline must be handled as a major (substantial) amendment. It is not a statutory requirement. In addition to changing the deadline for initiating projects, the amendment will address the following: •
Note that additional funding is being provided for the US 101 SE 32nd Street project.
•
Reflect the final reconciliation of the Safe Haven, SW Abalone, SW 30th, SW Brant, SW 27th and SE Ferry Slip Road projects all of which are now complete.
•
Allocate additional funds for line undergrounding along SE Ferry Slip Road/US 101.
•
Allocate funds for a refinement plan to map out future use of the Agency owned property at the NE corner of the future 35th/lOl intersection.
•
Update tax increment revenue and debt projections.
•
Adjustment the Phase Ill project program as determined by the Agency.
—
SE 35th Street Improvement
It has taken a while for us to get final reconciled figures on completed projects. That is, at least in part, why we are only now moving forward with the amendment. For this work session, I would like to talk to you about any adjustments that may be needed to Phase III projects (the last bullet) before I bring forward an amended document for your review and consideration. I’ll put together a few PowerPoint slides for the work session to help facilitate the discussion. Attachments March 6, 2017 Urban Renewal Agency Packet Page 1 of 1
STAFF REPORT URBAN RENEWAL AGENCY AGENDA ITEM
Title: Adjustments to US 101: SE 32nd Street – SE 35th Street Budget and Ramifications to Planned Phase III Urban Renewal Projects Prepared by: Derrick I. Tokos, AICP, Community Development Director Recommended Motion: None. This is a discussion item. Background Information: On February 6, 2017, Agency received a briefing regarding the status of the design and budget for the US 101: SE 32 nd Street – SE 35th Street Improvement project. The project was scoped and designed by ODOT pursuant to an Intergovernmental Agreement with the City. At this time, there is close to a $2,000,000 shortfall in the construction budget that will need to be addressed to complete the improvements, as envisioned. Staff assessed the financial condition of the South Beach Urban Renewal District and can confirm that sufficient funds are available and that those funds can be dedicated to this project without compromising other urban renewal priorities. The audited fund balance for the South Beach URA District at the end of the 2015/2016 fiscal year was $2,995,704. This is largely "pay as you go" tax increment revenue that has accrued over the years, since the District has been using bond proceeds for construction and tax increment collections have exceeded the District’s debt obligations. About $500,000 of this amount needs to be placed in a debt reserve account to ensure that there are sufficient funds to cover the reserve requirement that applies to the District’s 2007, 2008 and 2010 outstanding debt obligations. That leaves close to $2.5 million that can be shifted to construction. The $500,000 in the debt reserve will continue to be needed for that purpose to ensure that the South Beach District satisfies the pledged coverage requirement of its outstanding bonds, which stipulate that 125% of the debt service amount be available on an annual basis to ensure there are sufficient funds for each year’s payment. Assuming a conservative 2.2% growth rate for tax increment revenue, it appears the District will be in a position to safely leverage the $7.36 million planned Phase III borrow. This is depicted in the pledged coverage ratio analysis (attached). ODOT has indicated that they do not have additional funds to dedicate to this project. They are working to value engineer the design and expect some cost savings as a result; however, that work is not finished. Staff intends to advise ODOT that the additional funding will be included in a budget proposal to the Agency and that a decision on whether or not the funds will be appropriated for this project will be made as part of the Agency’s budget process. This may push back the date by which ODOT completes its design and initiates construction. The current plan is for construction to begin spring of 2018. An amendment to the IGA between the City and State would be Page 1 of 2
needed to acknowledge the additional project funding. The amended agreement should also include language indicating that no additional local funding will be provided or required for this project. The additional $2 million in funding will bring the Agency’s contribution to a little over $3.5 million, with the State’s contribution being a little over $2.5 million. It is important to note though that close to $1.5 million of Agency’s contribution was spent on Ferry Slip Road improvements, which is a city roadway. The 35th Street improvements that the State is designing will also be city facilities. With respect to the Phase III projects, Agency should consider initiating a major amendment to the South Beach Urban Renewal Plan to extend the deadline for initiating projects from FYE 2020 to FYE 2025 to fully leverage its tax increment resources. The District would still close in 2027. The South Beach Urban Renewal Plan stipulates that this type of change must be handled as a major amendment. It is not a statutory requirement. The amendment would also address the following:
Note that additional funding is being provided for the US 101 SE 32nd Street – SE 35th Street Improvement project.
Reflect the final reconciliation of the Safe Haven, SW Abalone, SW 30th, SW Brant, SW 27th and SE Ferry Slip Road projects all of which are now complete.
Allocate additional funds for line undergrounding along SE Ferry Slip Road/US 101.
Allocate funds for a refinement plan to map out future use of the Agency owned property at the NE corner of the future 35th/101 intersection.
Update tax increment revenue and debt projections.
Adjustment the Phase III project program as determined by the Agency.
The major amendment would be initiated to coincide with the FYE 18 budget process, and should not be controversial with the affected taxing districts since the closure date for the District will not be changed. Fiscal Notes: As noted, the South Beach Urban Renewal District has sufficient funds to address the project shortfall without compromising the Phase III project program. Alternatives: Drop plans for filling in sidewalk gaps on the west/east sides of US 101, which would reduce the shortfall to about $900,000 or seek to terminate the project, in which case Agency would be obligated for funds that have been expended and the City would be at risk of losing the alternate mobility standard it negotiated with the State to allow full use of the available US 101 highway capacity. Attachments: Pledged Coverage Ratio Analysis US 101: SE 32nd – SE 35th Street Improvement STIP Project Briefing (2/6/17) Briefing on Phase III South Beach URA Projects (4/4/16) Page 2 of 2
City of Newport South Beach Urban Renewal Plan Pledged Coverage Ratio Analysis
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Tax Increment Revenue $1,816,403 $1,891,622 $1,933,238 $1,975,769 $2,019,236 $2,063,659 $2,109,060 $2,155,459 $2,202,879 $2,251,342 $2,300,872 $2,351,491 $2,403,224
Annual Growth -0.031 0.041 0.022 0.022 0.022 0.022 0.022 0.022 0.022 0.022 0.022 0.022 0.022
Existing Debt Service (*) $1,215,078 $1,221,148 $1,270,243 $1,243,638 $1,097,800 $763,550 $545,075 $609,675 $569,250
2015 Issue Debt Service $296,011 $246,807 $273,309 $418,762 $753,321 $972,140 $744,966 $784,522 $1,016,820 $1,016,641
2019 Issue Debt Service
$300,000 $375,000 $425,000 $500,000 $625,000 $700,000 $850,000 $2,351,491 $2,903,224
Reserve(**) Requirement $435,686 $435,843 $317,963 -
Pledged Coverage 2.33 1.75 1.61 1.94 1.53 1.48 1.46 1.59 1.49 1.85 1.68 1.27
Total Debt Service $1,215,078 $1,517,159 $1,517,050 $1,516,947 $1,816,562 $1,891,871 $1,942,215 $1,854,641 $1,978,772 $1,716,820 $1,866,641 $2,351,491 $2,903,224
Debt Reserve $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $0
Excess Increment Available for Projects (i.e. Pay as you go)
$416,188 $458,822 $202,674 $171,788 $166,845 $300,818 $224,107 $534,522 $434,231 $0
* 2007 Series, 2008 Series, and 2010B Series bonds ** Reserve requirement applies to the 2007, 2008, and 2010B series bonds only
Notes: The audited fund balance for the South Beach District at the end of the 2015/2016 fiscal year was $2,995,704. This is largely "pay as you go" tax increment that has accrued over the years, as the District has used bond proceeds for construction and tax increment collections have exceeded the District's debt obligations. About $500,000 of this amount should be placed in a debt reserve account to ensure that there are sufficient funds to cover the reserve requirement that applies to the 2007, 2008 and 2010 debt obligations. That leaves close to $2.5 million that can be shifted to construction. The $500,000 in the debt reserve will continue to be needed for that purpose to ensure that the URA District satisfies its pledged coverage requirement, which stipulates that 125% of the debt service amount be available on an annual basis to ensure there are sufficient funds for debt service. Assuming a conservative 2.2% growth rate for tax increment revenue, it appears the District will be in a position to safely leverage the $7.36 million planned Phase III borrow. Agency should consider implementing a major amendment to extend the deadline for initiating projects from FYE 2020 (highlighted) to FYE 2025 to fully leverage its tax increment resources.
Total Excess: (Pay as you go)
$2,909,994
Available funds: FYE 2016
$2,495,704
US 101: SE 32nd Street –SE 35th Street Improvements 2015-2018 STIP Project
Project Overview
Construct signalized intersection at US 101 and SE 35th Street
Eliminate signal and channelize US 101 and SE 32nd St intersection
Close SE Ferry Slip Road and US 101 Intersection
35th US 101 – Ferry Slip Road Project
Install bike and pedestrian facilities along US 101 between Yaquina Bay Bridge and SE 35th Street
Widen SE Ferry Slip Road from SE 32nd St south to SE Ash St to provide north/south alternative to US 101 for vehicles, bicyclists and pedestrians
Newport Urban Renewal Agency - February 6, 2017 Briefing
Vicinity Map Black line work shows street and pathway improvements completed since 2010. Red line work is for project elements that are being designed by ODOT.
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Project Timeline Concept Developed with SBURP Amendment No. 5 (Early 2009)
Projects Added to Newport TSP
Enhance Funds Awarded
Application Submitted for Enhance Funds
City Design of Ferry Slip Improvements Starts
(Fall 2012)
(Summer 2012)
Concept Refined with Coho/Brant Plan
35th US 101 – Ferry Slip Road Project
(Summer 2014)
(Fall 2013)
ODOT Amends Highway Plan Easing Capacity Limitations
ODOT Preliminary Design Budget Amended
Complete Final Design of 35th and US 101
Ferry Slip Work Completed
Acquire Right-ofWay and Easements
Summer 2016)
(End 2017)
(Summer 2015)
Now
ODOT Preliminary Design of 35th and US 101 Underway
Design Acceptance for 35th and US 101
Ferry Slip Design Complete and Project Bid
Budget Amendment Needed or Scale Back Project to Adjust Shortfall
(Early 2018)
Initiate Construction of 35th and US 101 Improvements
Newport Urban Renewal Agency - February 6, 2017 Briefing
Current Budget
Original budget prepared by ODOT as part of scoping process for Enhance Grant
Local funding used to construct SE Ferry Slip Road Improvements is a project match ODOT supplemented PE Budget by $584,000 to address additional cost of contracting the work Utility undergrounding along US 101 and SE Ferry Slip is a City/PUD project to be undertaken in 2017 (before ODOT bids US 101/35th work) 35th US 101 – Ferry Slip Road Project
Funding Sources ODOT (Federal) Urban Renewal Match Other Urban Renewal Total
$2,562,200 $1,534,500 $103,500 $4,200,200
Deductions/Additions Preliminary Engineering Ferry Slip Road Work Cost Savings Other URA
-$900,000 -$1,443,382 $244,162
Available for Construction Reserved for Line Undergrounding Urban Renewal Undergrounding Fund
$2,100,980
$300,000 $200,000
Newport Urban Renewal Agency - February 6, 2017 Briefing
Index Map – Preliminary ODOT Design Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Sidewalk: Bridge to 32nd St – ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Sidewalk: Abalone to Anchor Way - ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
US 101: 32nd to 35th – ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
US 101: 35th to Ferry Slip – ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
35th St: Abalone to Ferry Slip – ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Engineer’s Estimate - Draft Design MINIMUM REQUIRED TO RELOCATE SIGNAL Construction Item
US101 SE 32nd Street to Ferry Slip Road
SE & SW 35th Street
SIDEWALKS NORTH OF 32ND SE 32nd St. - Pacific Way (East Side)
Anchor Way - Abalone St (West Side)
Mobilization & Traffic Control
$
430,000 $
100,000 $
70,000 $
50,000
Earthwork
$
10,000 $
100,000 $
30,000 $
35,000
Drainage
$
150,000 $
- $
- $
-
Stormwater Treatment
$
75,000 $
50,000 $
30,000 $
55,000
Base & Paving
$
50,000 $
110,000 $
- $
10,000
Sidewalks & Driveways
$
170,000 $
100,000 $
160,000 $
85,000
Signing & Striping
$
60,000 $
10,000 $
- $
5,000
Traffic Signals
$
310,000 $
- $
- $
-
Walls
$
-$
- $
- $
-
Lighting (foundation/wiring)
$
90,000 $
60,000 $
70,000 $
50,000
Subtotal Construction Items $
1,345,000 $
530,000 $
360,000 $
290,000
Contingencies (25%) $
340,000 $
130,000 $
90,000 $
70,000
Anticipated Items $
-$
- $
- $
-
Construction Engineering (15%) $
200,000 $
80,000 $
50,000 $
40,000
Wetland Mitigation $
5,000 $
10,000 $
15,000 $
5,000
PUD payment to Set $ Poles/Fixtures
17,000 $
10,000 $
13,000 $
10,000
Right of Way $
15,000 $
250,000 $
130,000 $
85,000
TOTAL BY SEGMENT $
1,930,000 $
1,010,000 $
660,000 $
500,000
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Budget Implications Construction Funds
$2,100,980
Estimated Cost
$4,100,000
Shortfall Eliminate Sidewalk - 32nd to Pacific Way Eliminate Sidewalk - Abalone to Anchor Way Shortfall
35th US 101 – Ferry Slip Road Project
-$1,999,020
$660,000
$500,000 -$839,020
Newport Urban Renewal Agency - February 6, 2017 Briefing
Reasons for the Shortfall
ODOT construction scoping estimate off by $1.5 Million o
More stringent stormwater treatment requirements
o
Additional ROW, easements, earthwork, erosion control, and wetland mitigation due to design changes to add drainage swales
o
No lighting costs in original estimate
o
Higher cost of construction engineering
o
Increased construction cost for curb work, sidewalk and striping
o
Sidewalk along US 101 from SE 35th St to Ferry Slip (east side) not originally scoped
Cost of City’s Ferry Slip Road improvement project exceeded anticipated expenditures by more than $400,000 o
Quantity overages resulting from design errors
o
Out of scope work (e.g. drainage improvements to Chestnut St)
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Options
for Addressing Shortfall
Obligate additional funds, seek further design changes, remove US 101 sidewalk elements between bridge and 32nd Street Structured storm drainage solution with treatment at alternate city site is being evaluated as a potential cost savings measure Staff is coordinating with ODOT on potential 50/50 cost share of expenses over original budget (Note: ODOT has already contributed an additional $584,000) 35th US 101 – Ferry Slip Road Project
Funding Sources ODOT (Federal) Urban Renewal Match Other Urban Renewal Total
$2,562,200 $1,534,500 $103,500 $4,200,200
Deductions/Additions Preliminary Engineering Ferry Slip Road Work Cost Savings Other URA
-$900,000 -$1,443,382 $244,162
Available for Construction
$2,100,980
Draft Design Cost Estimate $4,100,000 Shortfall
-$1,999,020
Additional ODOT (Federal) $750,000 Additional Urban Renewal $1,250,000 Newport Urban Renewal Agency - February 6, 2017 Briefing
Other Considerations
Estimate of Central Lincoln PUD costs for undergrounding utilities is $635,000 for Ferry Slip and $365,000 for US 101
Will likely need an additional $500-$600,000 in line undergrounding/urban renewal funds to complete work
US 101 Pavement Condition Assessment recommended reconstruction, which was beyond project scope
Project includes micro seal for surface of US 101 as short-term, largely cosmetic, solution
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Next Steps
Obtain feedback from ODOT Region 2 regarding additional funding they are prepared to dedicate to the project
Assess impacts of obligating additional urban renewal funds on future Phase III projects and debt retirement
Assist ODOT and its consultants with review of additional design alternatives that might reduce construction costs
Schedule Urban Renewal Agency work session to review the above, and discuss project construction budget for FY 17/18
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Preliminary Discussion Final Phase of South Beach Urban Renewal Plan APRIL 4, 2016 NEWPORT URBAN RENEWAL AGENCY WORK SESSION
Phase 2 Winding Down Items to Address FY 15/16
Minor Amendment 12 to the Urban Renewal Plan to: o
Update project list with final costs
o
Increase Safe Haven Hill match (about $20,000)
o
Shift unused project funds to 35th and US 101 (about $900,000)
Supplemental Budget to appropriate $192,000 of addition FEMA funds for Safe Haven Hill
Close out Safe Haven, 27th, 30th, Abalone, Brant, and Ferry Slip projects
Urban Renewal FY 16/17 Budget The last of the Phase 2 work
ODOT to design 35th and US 101 Improvements
Utility undergrounding plan for US 101& Ferry Slip
$50,000 towards easement acquisition and grant match for SE Chestnut Street trail
$200,000 for right-of-way acquisition (35th and US 101 and SE 62nd Street)
Build up building demolition reserve for parcel at NE corner of US 101 and 35th
Phase 3 Projects – 2017-2020 Urban Renewal (UR) Plan Projects
Estimate as listed in Plan
UR Portion
40th and 101 Signal and Intersection
$2,624,000
$1,000,000
50th and US 101 Intersection Improvements
$1,970,000
$400,000
Sidewalks - 35th Street east of Ferry Slip
$400,000
$400,000
Match for LIDs for paving SW 28th, SW 29th and SW Coho Streets
TBD
$200,000
12” Redundant Bay Under-crossing pipeline
$995,000
$795,000
US 101 sewer gravity line to airport
$1,000,000
$1,000,000
Henderson Creek Sewer piping
$280,000
$280,000
Henderson Creek Lift Station
$323,000
$323,000
Storm Drainage Improvements (Project 5a)
$1,480,000
$1,480,000
Utility Undergrounding
$200,000
$200,000
Public Amenities (Street and Open Space Plantings, Street Furniture, Gateway to South Beach, Neighborhood Park and Open Space Acquisition)
$1,050,000
$450,000
Storefront Facade Loan/Grant Program
$100,000
$100,000
Special Projects (Trails acquisition, Coastal Gully Open Space Improvements, Jetty Trail Improvements, Tsunami Evacuation Route Enhancements, Wetland Mitigation Banking)
$700,000
$700,000
Projected Revenue & Debt Service (Assumes annual growth of 3.0%) URA Incremental Revenue 3%
Total Existing Remaining Phase II Remaining Phase III Remaining Debt Uncommitted Debt Uncommitted Debt Uncommitted Service Revenue Service Revenue Service Revenue
2010-11
1,848,185 1,314,972
(480,394)
(480,394)
(480,394)
2011-12
1,808,906 1,339,603
(108,106)
(108,106)
(108,106)
2012-13
1,891,500 1,332,148
296,039
296,039
296,039
2013-14
1,948,245 1,376,405
921,331
921,331
921,331
2014-15
2,006,692 1,215,078
1,588,657
729,700
321,892
321,892
2015-16
2,066,893 1,221,148
2,262,910
729,700
1,049,851
1,049,851
2016-17
2,128,900 1,270,243
2,909,491
729,700
1,750,139
1,750,139
2017-18
2,192,767 1,243,638
3,559,315
729,700
2,453,669
2,453,669
2018-19
2,258,550 1,097,800
4,923,319
729,700
3,871,380
3,871,380
2019-20
2,326,307
763,550
6,569,626
729,700
5,571,393 1,249,993
3,585,391
2020-21
2,396,096
545,075
8,217,073
729,700
7,272,547 1,249,993
5,360,146
2021-22
2,467,979
609,675
9,972,659
729,700
9,081,839 1,249,993
7,243,039
2022-23
2,542,018
569,250
12,367,240
729,700
11,530,127 1,249,993
9,764,928
2023-24
2,618,279
14,833,659
729,700
14,103,959 1,249,993
12,412,361
2024-25
2,696,827
17,374,070
17,374,070 1,249,993
15,756,073
2025-26
2,777,732
19,990,694
19,990,694 1,249,993
18,446,297
2026-27
2,861,064
22,685,816
22,685,816 1,249,993
21,215,021
Term of Loan (Years) Total Amount Borrowed
10 5,370,656
7,360,087
There is about $15,300,000 Available Before the District Hits its Maximum Indebtedness Limit
Escalating Cost Estimates Urban Renewal can’t pay for all of the projects Urban Renewal Project
Date of Original Estimate
Redundant Under-Bay Water Line Crossing
2008
$3,526,169
35th Street Sidewalk
2008
$604,427
40th and US 101 Signal
2012
$3,455,307
50th and US 101 Intersection Improvements
2012
$2,060,806
SW 28th, 29th and Coho Street Improvements 2012
$1,109,984
US 101 Sewer Gravity Line to Airport
2008
$1,570,984
Henderson Creek Sewer Piping
2008
$424,186
Henderson Creek Lift Station
2008
$489,062
Storm Drainage Improvements (US 101 @ Southshore)
2015
$121,283
Public Amenities: Neighborhood Park
2012
$693,226
Special Projects: Jetty Trail Improvements
2012
$639,969
Special Projects: Coastal Gully Open Space
2012
$733,249
1
Assumes 3.5% annual increase in construction costs.
Escalated Cost 1 2020
Total: Anticipated UR Borrow:
$15,428,654
Shortfall:
-$8,068,654
$7,360,000
US 101 at SW 40th Street
Widen highway and install traffic signal
High priority TSP project
Project is scalable
May have sufficient demand to meet ODOT signal warrants by 2020
Potential Funding Partners: Private developers
50th & US 101 Intersection
2012 TSP update included modified project that aligns 50th with State Park entrance
Assigned low priority in TSP
Significant environmental challenges
Unlikely there will be a need for the improvement before UR District sunsets
35th Street Sidewalk
Construct sidewalk on one side of street
Newport TSP identifies as high priority project
Difficult due to number of developed properties and narrow right-of-way
Easements must be acquired
Potential Funding Partners: None
SW 28th, 29th & SW Coho Streets
2012 estimate for these street improvements is about $840,000
Low priority projects in the TSP
UR contribution would have to increase to at least 80% of cost for an LID to be viable
Potential Funding Partners: Owners via LID
Redundant Bay Under-Crossing
Installation of a 12-inch under bay water main from McLean Point to Idaho Point
Provides a redundant line to minimize risk of service disruption to South Beach
Water System Master Plan identifies as medium priority
Cost likely to exceed $3.5 million
Potential Funding Partners: NOAA Resiliency Grant, Water Resources Department, Revenue Bonds
Sewer Gravity Line to Airport
Airport and sewer master plans to inform feasibility and cost
Critical to future airport related commercial/industrial development
Potential funding partners may include FAA, Business Oregon, ConnectOregon, and private developers
Henderson Creek Lift Station
Lift station and piping would serve existing residences west of the Airport
Sewer improvements and the benefitting properties are outside of the UR District
Project scope and estimates are being updated in the new Sewer Master Plan
Project can be funded with non-URA sources, such as an LID, SDCs and/or DEQ grant
US 101 Storm Drainage 2004 Master Plan 2015 Master Plan
Ties to 2004 plan that calls for the US 101 ditches to be extended to a drainage south of Southshore. Culverts to be upsized
Predates work ODOT has done to improve roadside ditch storage, which mitigated much of the flooding
New storm drainage master plan calls for alternate solution at vastly reduced cost
Utility Undergrounding
City and Central Lincoln PUD to develop a line undergrounding plan
US 101 and Ferry Slip are priority areas
Phase II funding in the amount of $500,000 has been transferred to capital
Construction to be timed with ODOT 35th Street work in 2018
Public Amenities Neighborhood Park Concept from 2012 Coho/Brant Plan
Amenities may include: o
Street and open space plantings,
o
Street furniture
o o o
Gateway Feature to South Beach
Neighborhood Park, or Open Space Acquisition
Special Projects
Gully Open Space and Jetty Trail Concepts from 2012 Coho/Brant Plan
Special Projects may include: o
Trail acquisitions
o
Tsunami Evacuation Route Enhancements
o
Jetty Trail Improvements
o
Coastal Gully Open Space Improvements
o
Wetland Mitigation Banking
Prioritizing Phase 3 Projects Potential Priority
Projects 40th and 101 signal and intersection work US 101 sewer gravity line to airport
High
Redundant Bay under-crossing pipeline Utility undergrounding 35th Street sidewalks Match for LIDs for paving SW 28th, SW 29th and SW Coho Streets
Medium
Public Amenities (e.g. neighborhood park and open Space acquisition) Special Projects (e.g. Coastal Gully and Jetty Trail improvements) Storm drainage improvements Henderson Creek sewer piping
Low
Henderson Creek lift station 50th and US 101 intersection improvements Storefront facade loan/grant program
Next Steps FY 16/17
Leverage Airport, Storm Drainage and Sewer Master Plans to refine projects
Identify opportunities to supplement UR funding with other sources
Present LID option to Coho/Brant property owners
Design completed for 35th & US 101 project
FY 17/18
ODOT initiates 35th and US 101 construction
UR Agency conducts outreach to inform final construction phase priorities
o
Plan for redevelopment of NE 35th and US 101 parcel
o
Vet concepts for public amenities and special projects
o
Confirm project priorities
Amend Urban Renewal Plan, as needed
Next Steps FY 18/19
35th and US 101 improvements completed
Demo buildings at NE corner of 35th and US 101 and market for redevelopment
Confirm revenue receipts and projections
Borrow funds for final construction phase
Initiate final phase of construction
December 31, 2020
Funds obligated for all remaining construction projects
June 30, 2027
All construction completed including disposition of parcel at 35th and US 101
Debt is retired and district is closed
Community Development Department
Memorandum To:
Planning Commission/Commission Advisory Committee
From:
Derrick I. Tokos, AICP, Community Development DirectorV’
Date:
March 7, 2018
Re:
Discussion about Major Amendment 13 to the South Beach Urban Renewal Plan
In March of 2017, staff updated the Newport Urban Renewal Agency on the status of the South Beach Urban Renewal Plan projects (see attached). The Agency is moving into Phase Ill of the plan, which is the final round of construction projects. This phase of construction will be funded with a $7,360,000 revenue bond to be issued in calendar year 2019. The South Beach Urban Renewal Plan contains an FYE 2020 deadline for initiating new projects. Agency members discussed the need to extend that deadline to FYE 2025 to provide a realistic amount of time to complete the work. This will also allow the City to fully leverage its tax increment resources. The District is scheduled to close in 2027 and this amendment will not change the closure date. The South Beach Urban Renewal Plan stipulates that a change to the 2020 deadline must be handled as a major (substantial) amendment. It is not a statutory requirement. In addition to changing the deadline for initiating projects, the amendment will address the following: •
Note that additional funding is being provided for the US 101 SE 32nd Street project.
•
Reflect the final reconciliation of the Safe Haven, SW Abalone, SW 30th, SW Brant, SW 27th and SE Ferry Slip Road projects all of which are now complete.
•
Allocate additional funds for line undergrounding along SE Ferry Slip Road/US 101.
•
Allocate funds for a refinement plan to map out future use of the Agency owned property at the NE corner of the future 35th/lOl intersection.
•
Update tax increment revenue and debt projections.
•
Adjustment the Phase Ill project program as determined by the Agency.
—
SE 35th Street Improvement
It has taken a while for us to get final reconciled figures on completed projects. That is, at least in part, why we are only now moving forward with the amendment. For this work session, I would like to talk to you about any adjustments that may be needed to Phase III projects (the last bullet) before I bring forward an amended document for your review and consideration. I’ll put together a few PowerPoint slides for the work session to help facilitate the discussion. Attachments March 6, 2017 Urban Renewal Agency Packet Page 1 of 1
STAFF REPORT URBAN RENEWAL AGENCY AGENDA ITEM
Title: Adjustments to US 101: SE 32nd Street – SE 35th Street Budget and Ramifications to Planned Phase III Urban Renewal Projects Prepared by: Derrick I. Tokos, AICP, Community Development Director Recommended Motion: None. This is a discussion item. Background Information: On February 6, 2017, Agency received a briefing regarding the status of the design and budget for the US 101: SE 32 nd Street – SE 35th Street Improvement project. The project was scoped and designed by ODOT pursuant to an Intergovernmental Agreement with the City. At this time, there is close to a $2,000,000 shortfall in the construction budget that will need to be addressed to complete the improvements, as envisioned. Staff assessed the financial condition of the South Beach Urban Renewal District and can confirm that sufficient funds are available and that those funds can be dedicated to this project without compromising other urban renewal priorities. The audited fund balance for the South Beach URA District at the end of the 2015/2016 fiscal year was $2,995,704. This is largely "pay as you go" tax increment revenue that has accrued over the years, since the District has been using bond proceeds for construction and tax increment collections have exceeded the District’s debt obligations. About $500,000 of this amount needs to be placed in a debt reserve account to ensure that there are sufficient funds to cover the reserve requirement that applies to the District’s 2007, 2008 and 2010 outstanding debt obligations. That leaves close to $2.5 million that can be shifted to construction. The $500,000 in the debt reserve will continue to be needed for that purpose to ensure that the South Beach District satisfies the pledged coverage requirement of its outstanding bonds, which stipulate that 125% of the debt service amount be available on an annual basis to ensure there are sufficient funds for each year’s payment. Assuming a conservative 2.2% growth rate for tax increment revenue, it appears the District will be in a position to safely leverage the $7.36 million planned Phase III borrow. This is depicted in the pledged coverage ratio analysis (attached). ODOT has indicated that they do not have additional funds to dedicate to this project. They are working to value engineer the design and expect some cost savings as a result; however, that work is not finished. Staff intends to advise ODOT that the additional funding will be included in a budget proposal to the Agency and that a decision on whether or not the funds will be appropriated for this project will be made as part of the Agency’s budget process. This may push back the date by which ODOT completes its design and initiates construction. The current plan is for construction to begin spring of 2018. An amendment to the IGA between the City and State would be Page 1 of 2
needed to acknowledge the additional project funding. The amended agreement should also include language indicating that no additional local funding will be provided or required for this project. The additional $2 million in funding will bring the Agency’s contribution to a little over $3.5 million, with the State’s contribution being a little over $2.5 million. It is important to note though that close to $1.5 million of Agency’s contribution was spent on Ferry Slip Road improvements, which is a city roadway. The 35th Street improvements that the State is designing will also be city facilities. With respect to the Phase III projects, Agency should consider initiating a major amendment to the South Beach Urban Renewal Plan to extend the deadline for initiating projects from FYE 2020 to FYE 2025 to fully leverage its tax increment resources. The District would still close in 2027. The South Beach Urban Renewal Plan stipulates that this type of change must be handled as a major amendment. It is not a statutory requirement. The amendment would also address the following:
Note that additional funding is being provided for the US 101 SE 32nd Street – SE 35th Street Improvement project.
Reflect the final reconciliation of the Safe Haven, SW Abalone, SW 30th, SW Brant, SW 27th and SE Ferry Slip Road projects all of which are now complete.
Allocate additional funds for line undergrounding along SE Ferry Slip Road/US 101.
Allocate funds for a refinement plan to map out future use of the Agency owned property at the NE corner of the future 35th/101 intersection.
Update tax increment revenue and debt projections.
Adjustment the Phase III project program as determined by the Agency.
The major amendment would be initiated to coincide with the FYE 18 budget process, and should not be controversial with the affected taxing districts since the closure date for the District will not be changed. Fiscal Notes: As noted, the South Beach Urban Renewal District has sufficient funds to address the project shortfall without compromising the Phase III project program. Alternatives: Drop plans for filling in sidewalk gaps on the west/east sides of US 101, which would reduce the shortfall to about $900,000 or seek to terminate the project, in which case Agency would be obligated for funds that have been expended and the City would be at risk of losing the alternate mobility standard it negotiated with the State to allow full use of the available US 101 highway capacity. Attachments: Pledged Coverage Ratio Analysis US 101: SE 32nd – SE 35th Street Improvement STIP Project Briefing (2/6/17) Briefing on Phase III South Beach URA Projects (4/4/16) Page 2 of 2
City of Newport South Beach Urban Renewal Plan Pledged Coverage Ratio Analysis
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Tax Increment Revenue $1,816,403 $1,891,622 $1,933,238 $1,975,769 $2,019,236 $2,063,659 $2,109,060 $2,155,459 $2,202,879 $2,251,342 $2,300,872 $2,351,491 $2,403,224
Annual Growth -0.031 0.041 0.022 0.022 0.022 0.022 0.022 0.022 0.022 0.022 0.022 0.022 0.022
Existing Debt Service (*) $1,215,078 $1,221,148 $1,270,243 $1,243,638 $1,097,800 $763,550 $545,075 $609,675 $569,250
2015 Issue Debt Service $296,011 $246,807 $273,309 $418,762 $753,321 $972,140 $744,966 $784,522 $1,016,820 $1,016,641
2019 Issue Debt Service
$300,000 $375,000 $425,000 $500,000 $625,000 $700,000 $850,000 $2,351,491 $2,903,224
Reserve(**) Requirement $435,686 $435,843 $317,963 -
Pledged Coverage 2.33 1.75 1.61 1.94 1.53 1.48 1.46 1.59 1.49 1.85 1.68 1.27
Total Debt Service $1,215,078 $1,517,159 $1,517,050 $1,516,947 $1,816,562 $1,891,871 $1,942,215 $1,854,641 $1,978,772 $1,716,820 $1,866,641 $2,351,491 $2,903,224
Debt Reserve $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $0
Excess Increment Available for Projects (i.e. Pay as you go)
$416,188 $458,822 $202,674 $171,788 $166,845 $300,818 $224,107 $534,522 $434,231 $0
* 2007 Series, 2008 Series, and 2010B Series bonds ** Reserve requirement applies to the 2007, 2008, and 2010B series bonds only
Notes: The audited fund balance for the South Beach District at the end of the 2015/2016 fiscal year was $2,995,704. This is largely "pay as you go" tax increment that has accrued over the years, as the District has used bond proceeds for construction and tax increment collections have exceeded the District's debt obligations. About $500,000 of this amount should be placed in a debt reserve account to ensure that there are sufficient funds to cover the reserve requirement that applies to the 2007, 2008 and 2010 debt obligations. That leaves close to $2.5 million that can be shifted to construction. The $500,000 in the debt reserve will continue to be needed for that purpose to ensure that the URA District satisfies its pledged coverage requirement, which stipulates that 125% of the debt service amount be available on an annual basis to ensure there are sufficient funds for debt service. Assuming a conservative 2.2% growth rate for tax increment revenue, it appears the District will be in a position to safely leverage the $7.36 million planned Phase III borrow. Agency should consider implementing a major amendment to extend the deadline for initiating projects from FYE 2020 (highlighted) to FYE 2025 to fully leverage its tax increment resources.
Total Excess: (Pay as you go)
$2,909,994
Available funds: FYE 2016
$2,495,704
US 101: SE 32nd Street –SE 35th Street Improvements 2015-2018 STIP Project
Project Overview
Construct signalized intersection at US 101 and SE 35th Street
Eliminate signal and channelize US 101 and SE 32nd St intersection
Close SE Ferry Slip Road and US 101 Intersection
35th US 101 – Ferry Slip Road Project
Install bike and pedestrian facilities along US 101 between Yaquina Bay Bridge and SE 35th Street
Widen SE Ferry Slip Road from SE 32nd St south to SE Ash St to provide north/south alternative to US 101 for vehicles, bicyclists and pedestrians
Newport Urban Renewal Agency - February 6, 2017 Briefing
Vicinity Map Black line work shows street and pathway improvements completed since 2010. Red line work is for project elements that are being designed by ODOT.
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Project Timeline Concept Developed with SBURP Amendment No. 5 (Early 2009)
Projects Added to Newport TSP
Enhance Funds Awarded
Application Submitted for Enhance Funds
City Design of Ferry Slip Improvements Starts
(Fall 2012)
(Summer 2012)
Concept Refined with Coho/Brant Plan
35th US 101 – Ferry Slip Road Project
(Summer 2014)
(Fall 2013)
ODOT Amends Highway Plan Easing Capacity Limitations
ODOT Preliminary Design Budget Amended
Complete Final Design of 35th and US 101
Ferry Slip Work Completed
Acquire Right-ofWay and Easements
Summer 2016)
(End 2017)
(Summer 2015)
Now
ODOT Preliminary Design of 35th and US 101 Underway
Design Acceptance for 35th and US 101
Ferry Slip Design Complete and Project Bid
Budget Amendment Needed or Scale Back Project to Adjust Shortfall
(Early 2018)
Initiate Construction of 35th and US 101 Improvements
Newport Urban Renewal Agency - February 6, 2017 Briefing
Current Budget
Original budget prepared by ODOT as part of scoping process for Enhance Grant
Local funding used to construct SE Ferry Slip Road Improvements is a project match ODOT supplemented PE Budget by $584,000 to address additional cost of contracting the work Utility undergrounding along US 101 and SE Ferry Slip is a City/PUD project to be undertaken in 2017 (before ODOT bids US 101/35th work) 35th US 101 – Ferry Slip Road Project
Funding Sources ODOT (Federal) Urban Renewal Match Other Urban Renewal Total
$2,562,200 $1,534,500 $103,500 $4,200,200
Deductions/Additions Preliminary Engineering Ferry Slip Road Work Cost Savings Other URA
-$900,000 -$1,443,382 $244,162
Available for Construction Reserved for Line Undergrounding Urban Renewal Undergrounding Fund
$2,100,980
$300,000 $200,000
Newport Urban Renewal Agency - February 6, 2017 Briefing
Index Map – Preliminary ODOT Design Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Sidewalk: Bridge to 32nd St – ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Sidewalk: Abalone to Anchor Way - ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
US 101: 32nd to 35th – ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
US 101: 35th to Ferry Slip – ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
35th St: Abalone to Ferry Slip – ODOT Draft Design
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Engineer’s Estimate - Draft Design MINIMUM REQUIRED TO RELOCATE SIGNAL Construction Item
US101 SE 32nd Street to Ferry Slip Road
SE & SW 35th Street
SIDEWALKS NORTH OF 32ND SE 32nd St. - Pacific Way (East Side)
Anchor Way - Abalone St (West Side)
Mobilization & Traffic Control
$
430,000 $
100,000 $
70,000 $
50,000
Earthwork
$
10,000 $
100,000 $
30,000 $
35,000
Drainage
$
150,000 $
- $
- $
-
Stormwater Treatment
$
75,000 $
50,000 $
30,000 $
55,000
Base & Paving
$
50,000 $
110,000 $
- $
10,000
Sidewalks & Driveways
$
170,000 $
100,000 $
160,000 $
85,000
Signing & Striping
$
60,000 $
10,000 $
- $
5,000
Traffic Signals
$
310,000 $
- $
- $
-
Walls
$
-$
- $
- $
-
Lighting (foundation/wiring)
$
90,000 $
60,000 $
70,000 $
50,000
Subtotal Construction Items $
1,345,000 $
530,000 $
360,000 $
290,000
Contingencies (25%) $
340,000 $
130,000 $
90,000 $
70,000
Anticipated Items $
-$
- $
- $
-
Construction Engineering (15%) $
200,000 $
80,000 $
50,000 $
40,000
Wetland Mitigation $
5,000 $
10,000 $
15,000 $
5,000
PUD payment to Set $ Poles/Fixtures
17,000 $
10,000 $
13,000 $
10,000
Right of Way $
15,000 $
250,000 $
130,000 $
85,000
TOTAL BY SEGMENT $
1,930,000 $
1,010,000 $
660,000 $
500,000
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Budget Implications Construction Funds
$2,100,980
Estimated Cost
$4,100,000
Shortfall Eliminate Sidewalk - 32nd to Pacific Way Eliminate Sidewalk - Abalone to Anchor Way Shortfall
35th US 101 – Ferry Slip Road Project
-$1,999,020
$660,000
$500,000 -$839,020
Newport Urban Renewal Agency - February 6, 2017 Briefing
Reasons for the Shortfall
ODOT construction scoping estimate off by $1.5 Million o
More stringent stormwater treatment requirements
o
Additional ROW, easements, earthwork, erosion control, and wetland mitigation due to design changes to add drainage swales
o
No lighting costs in original estimate
o
Higher cost of construction engineering
o
Increased construction cost for curb work, sidewalk and striping
o
Sidewalk along US 101 from SE 35th St to Ferry Slip (east side) not originally scoped
Cost of City’s Ferry Slip Road improvement project exceeded anticipated expenditures by more than $400,000 o
Quantity overages resulting from design errors
o
Out of scope work (e.g. drainage improvements to Chestnut St)
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Options
for Addressing Shortfall
Obligate additional funds, seek further design changes, remove US 101 sidewalk elements between bridge and 32nd Street Structured storm drainage solution with treatment at alternate city site is being evaluated as a potential cost savings measure Staff is coordinating with ODOT on potential 50/50 cost share of expenses over original budget (Note: ODOT has already contributed an additional $584,000) 35th US 101 – Ferry Slip Road Project
Funding Sources ODOT (Federal) Urban Renewal Match Other Urban Renewal Total
$2,562,200 $1,534,500 $103,500 $4,200,200
Deductions/Additions Preliminary Engineering Ferry Slip Road Work Cost Savings Other URA
-$900,000 -$1,443,382 $244,162
Available for Construction
$2,100,980
Draft Design Cost Estimate $4,100,000 Shortfall
-$1,999,020
Additional ODOT (Federal) $750,000 Additional Urban Renewal $1,250,000 Newport Urban Renewal Agency - February 6, 2017 Briefing
Other Considerations
Estimate of Central Lincoln PUD costs for undergrounding utilities is $635,000 for Ferry Slip and $365,000 for US 101
Will likely need an additional $500-$600,000 in line undergrounding/urban renewal funds to complete work
US 101 Pavement Condition Assessment recommended reconstruction, which was beyond project scope
Project includes micro seal for surface of US 101 as short-term, largely cosmetic, solution
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Next Steps
Obtain feedback from ODOT Region 2 regarding additional funding they are prepared to dedicate to the project
Assess impacts of obligating additional urban renewal funds on future Phase III projects and debt retirement
Assist ODOT and its consultants with review of additional design alternatives that might reduce construction costs
Schedule Urban Renewal Agency work session to review the above, and discuss project construction budget for FY 17/18
35th US 101 – Ferry Slip Road Project
Newport Urban Renewal Agency - February 6, 2017 Briefing
Preliminary Discussion Final Phase of South Beach Urban Renewal Plan APRIL 4, 2016 NEWPORT URBAN RENEWAL AGENCY WORK SESSION
Phase 2 Winding Down Items to Address FY 15/16
Minor Amendment 12 to the Urban Renewal Plan to: o
Update project list with final costs
o
Increase Safe Haven Hill match (about $20,000)
o
Shift unused project funds to 35th and US 101 (about $900,000)
Supplemental Budget to appropriate $192,000 of addition FEMA funds for Safe Haven Hill
Close out Safe Haven, 27th, 30th, Abalone, Brant, and Ferry Slip projects
Urban Renewal FY 16/17 Budget The last of the Phase 2 work
ODOT to design 35th and US 101 Improvements
Utility undergrounding plan for US 101& Ferry Slip
$50,000 towards easement acquisition and grant match for SE Chestnut Street trail
$200,000 for right-of-way acquisition (35th and US 101 and SE 62nd Street)
Build up building demolition reserve for parcel at NE corner of US 101 and 35th
Phase 3 Projects – 2017-2020 Urban Renewal (UR) Plan Projects
Estimate as listed in Plan
UR Portion
40th and 101 Signal and Intersection
$2,624,000
$1,000,000
50th and US 101 Intersection Improvements
$1,970,000
$400,000
Sidewalks - 35th Street east of Ferry Slip
$400,000
$400,000
Match for LIDs for paving SW 28th, SW 29th and SW Coho Streets
TBD
$200,000
12” Redundant Bay Under-crossing pipeline
$995,000
$795,000
US 101 sewer gravity line to airport
$1,000,000
$1,000,000
Henderson Creek Sewer piping
$280,000
$280,000
Henderson Creek Lift Station
$323,000
$323,000
Storm Drainage Improvements (Project 5a)
$1,480,000
$1,480,000
Utility Undergrounding
$200,000
$200,000
Public Amenities (Street and Open Space Plantings, Street Furniture, Gateway to South Beach, Neighborhood Park and Open Space Acquisition)
$1,050,000
$450,000
Storefront Facade Loan/Grant Program
$100,000
$100,000
Special Projects (Trails acquisition, Coastal Gully Open Space Improvements, Jetty Trail Improvements, Tsunami Evacuation Route Enhancements, Wetland Mitigation Banking)
$700,000
$700,000
Projected Revenue & Debt Service (Assumes annual growth of 3.0%) URA Incremental Revenue 3%
Total Existing Remaining Phase II Remaining Phase III Remaining Debt Uncommitted Debt Uncommitted Debt Uncommitted Service Revenue Service Revenue Service Revenue
2010-11
1,848,185 1,314,972
(480,394)
(480,394)
(480,394)
2011-12
1,808,906 1,339,603
(108,106)
(108,106)
(108,106)
2012-13
1,891,500 1,332,148
296,039
296,039
296,039
2013-14
1,948,245 1,376,405
921,331
921,331
921,331
2014-15
2,006,692 1,215,078
1,588,657
729,700
321,892
321,892
2015-16
2,066,893 1,221,148
2,262,910
729,700
1,049,851
1,049,851
2016-17
2,128,900 1,270,243
2,909,491
729,700
1,750,139
1,750,139
2017-18
2,192,767 1,243,638
3,559,315
729,700
2,453,669
2,453,669
2018-19
2,258,550 1,097,800
4,923,319
729,700
3,871,380
3,871,380
2019-20
2,326,307
763,550
6,569,626
729,700
5,571,393 1,249,993
3,585,391
2020-21
2,396,096
545,075
8,217,073
729,700
7,272,547 1,249,993
5,360,146
2021-22
2,467,979
609,675
9,972,659
729,700
9,081,839 1,249,993
7,243,039
2022-23
2,542,018
569,250
12,367,240
729,700
11,530,127 1,249,993
9,764,928
2023-24
2,618,279
14,833,659
729,700
14,103,959 1,249,993
12,412,361
2024-25
2,696,827
17,374,070
17,374,070 1,249,993
15,756,073
2025-26
2,777,732
19,990,694
19,990,694 1,249,993
18,446,297
2026-27
2,861,064
22,685,816
22,685,816 1,249,993
21,215,021
Term of Loan (Years) Total Amount Borrowed
10 5,370,656
7,360,087
There is about $15,300,000 Available Before the District Hits its Maximum Indebtedness Limit
Escalating Cost Estimates Urban Renewal can’t pay for all of the projects Urban Renewal Project
Date of Original Estimate
Redundant Under-Bay Water Line Crossing
2008
$3,526,169
35th Street Sidewalk
2008
$604,427
40th and US 101 Signal
2012
$3,455,307
50th and US 101 Intersection Improvements
2012
$2,060,806
SW 28th, 29th and Coho Street Improvements 2012
$1,109,984
US 101 Sewer Gravity Line to Airport
2008
$1,570,984
Henderson Creek Sewer Piping
2008
$424,186
Henderson Creek Lift Station
2008
$489,062
Storm Drainage Improvements (US 101 @ Southshore)
2015
$121,283
Public Amenities: Neighborhood Park
2012
$693,226
Special Projects: Jetty Trail Improvements
2012
$639,969
Special Projects: Coastal Gully Open Space
2012
$733,249
1
Assumes 3.5% annual increase in construction costs.
Escalated Cost 1 2020
Total: Anticipated UR Borrow:
$15,428,654
Shortfall:
-$8,068,654
$7,360,000
US 101 at SW 40th Street
Widen highway and install traffic signal
High priority TSP project
Project is scalable
May have sufficient demand to meet ODOT signal warrants by 2020
Potential Funding Partners: Private developers
50th & US 101 Intersection
2012 TSP update included modified project that aligns 50th with State Park entrance
Assigned low priority in TSP
Significant environmental challenges
Unlikely there will be a need for the improvement before UR District sunsets
35th Street Sidewalk
Construct sidewalk on one side of street
Newport TSP identifies as high priority project
Difficult due to number of developed properties and narrow right-of-way
Easements must be acquired
Potential Funding Partners: None
SW 28th, 29th & SW Coho Streets
2012 estimate for these street improvements is about $840,000
Low priority projects in the TSP
UR contribution would have to increase to at least 80% of cost for an LID to be viable
Potential Funding Partners: Owners via LID
Redundant Bay Under-Crossing
Installation of a 12-inch under bay water main from McLean Point to Idaho Point
Provides a redundant line to minimize risk of service disruption to South Beach
Water System Master Plan identifies as medium priority
Cost likely to exceed $3.5 million
Potential Funding Partners: NOAA Resiliency Grant, Water Resources Department, Revenue Bonds
Sewer Gravity Line to Airport
Airport and sewer master plans to inform feasibility and cost
Critical to future airport related commercial/industrial development
Potential funding partners may include FAA, Business Oregon, ConnectOregon, and private developers
Henderson Creek Lift Station
Lift station and piping would serve existing residences west of the Airport
Sewer improvements and the benefitting properties are outside of the UR District
Project scope and estimates are being updated in the new Sewer Master Plan
Project can be funded with non-URA sources, such as an LID, SDCs and/or DEQ grant
US 101 Storm Drainage 2004 Master Plan 2015 Master Plan
Ties to 2004 plan that calls for the US 101 ditches to be extended to a drainage south of Southshore. Culverts to be upsized
Predates work ODOT has done to improve roadside ditch storage, which mitigated much of the flooding
New storm drainage master plan calls for alternate solution at vastly reduced cost
Utility Undergrounding
City and Central Lincoln PUD to develop a line undergrounding plan
US 101 and Ferry Slip are priority areas
Phase II funding in the amount of $500,000 has been transferred to capital
Construction to be timed with ODOT 35th Street work in 2018
Public Amenities Neighborhood Park Concept from 2012 Coho/Brant Plan
Amenities may include: o
Street and open space plantings,
o
Street furniture
o o o
Gateway Feature to South Beach
Neighborhood Park, or Open Space Acquisition
Special Projects
Gully Open Space and Jetty Trail Concepts from 2012 Coho/Brant Plan
Special Projects may include: o
Trail acquisitions
o
Tsunami Evacuation Route Enhancements
o
Jetty Trail Improvements
o
Coastal Gully Open Space Improvements
o
Wetland Mitigation Banking
Prioritizing Phase 3 Projects Potential Priority
Projects 40th and 101 signal and intersection work US 101 sewer gravity line to airport
High
Redundant Bay under-crossing pipeline Utility undergrounding 35th Street sidewalks Match for LIDs for paving SW 28th, SW 29th and SW Coho Streets
Medium
Public Amenities (e.g. neighborhood park and open Space acquisition) Special Projects (e.g. Coastal Gully and Jetty Trail improvements) Storm drainage improvements Henderson Creek sewer piping
Low
Henderson Creek lift station 50th and US 101 intersection improvements Storefront facade loan/grant program
Next Steps FY 16/17
Leverage Airport, Storm Drainage and Sewer Master Plans to refine projects
Identify opportunities to supplement UR funding with other sources
Present LID option to Coho/Brant property owners
Design completed for 35th & US 101 project
FY 17/18
ODOT initiates 35th and US 101 construction
UR Agency conducts outreach to inform final construction phase priorities
o
Plan for redevelopment of NE 35th and US 101 parcel
o
Vet concepts for public amenities and special projects
o
Confirm project priorities
Amend Urban Renewal Plan, as needed
Next Steps FY 18/19
35th and US 101 improvements completed
Demo buildings at NE corner of 35th and US 101 and market for redevelopment
Confirm revenue receipts and projections
Borrow funds for final construction phase
Initiate final phase of construction
December 31, 2020
Funds obligated for all remaining construction projects
June 30, 2027
All construction completed including disposition of parcel at 35th and US 101
Debt is retired and district is closed
